The Analytical Overview of the Main Currency Pairs on 2017.12.04

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.19025

Open: 1.18614

% chg. over the last day: -0.11

Day's range: 1.18362 – 1.18760

52 wk range: 1.0341 – 1.2069

Demand for the US dollar has grown significantly. On Saturday, the US Senate approved a bill on the tax reform. Currently, EUR/USD is testing the local support and resistance levels 1.18500 and 1.18850, respectively. Positions should be opened if the price fixes above/below these markers. We recommend paying attention to the US government bonds yield.

The news feed on 2017.12.04:

- The volume of industrial orders in the US at 17:00 (GMT+2:00).

The indicators do not send accurate signals. The price has crossed 200 MA.

The MACD histogram is located in the negative zone and below the signal line, which indicates a bearish sentiment on EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.18500, 1.18000

Resistance levels: 1.18850, 1.19300, 1.19600

If the price fixes below 1.18500, we recommend considering sales of EUR/USD. The movement is tending to the round level 1.18000.

Alternative option. If the price fixes above the local resistance of 1.18850, you need to look for entry points to the market to open long positions. The movement is tending to 1.19300-1.19600.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.35276

Open: 1.34341

% chg. over the last day: -0.39

Day's range: 1.34193 – 1.35130

52 wk range: 1.1450 – 1.3618

At the moment, there is a corrective movement on the GBP/USD currency pair. The price is testing the local support of 1.34350. The round level of 1.35000 is the nearest resistance. The trading instrument has the potential to further reduce. Demand for the US dollar has grown significantly. We are waiting for statistics on the UK economy.

At 11:30 (GMT+2:00) the index of business activity in the construction sector in the UK will be published.

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone and continues to decline, indicating a fall in GBP/USD.

Stochastic Oscillator has left the oversold zone, the %K line is above the %D line, which signals the purchase of GBP/USD.

Trading recommendations

Support levels: 1.34350, 1.33800, 1.33350

Resistance levels: 1.35000, 1.35450, 1.36000

If the price fixes below 1.34350, we recommend considering sales of GBP/USD. The target movement level is 1.33800-1.33350.

Alternative option. If the statistics from the UK is positive, a bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending to the round level of 1.35000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28934

Open: 1.26890

% chg. over the last day: -1.65

Day's range: 1.26890 – 1.27269

52 wk range: 1.2059 – 1.3795

On Friday, December 1, aggressive sales were observed on USD/CAD. The drop in quotations exceeded 1.5%. Demand for the Canadian dollar has significantly increased after the publication of positive data on the labor market and the GDP of Canada. At the moment, the price is testing the key support level of 1.26850. The local resistance is the mark of 1.27250. We recommend opening positions in the direction of the current trend.

The news feed on Canada's economy is calm.

The indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is located in the negative zone and continues to decline, which indicates a bearish sentiment on USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a sell signal for USD/CAD.

Trading recommendations

Support levels: 1.26850, 1.26500

Resistance levels: 1.27250, 1.27600, 1.28000

If the price fixes below the key support of 1.26850, the USD/CAD quotes are expected to fall further. The movement is tending to 1.26500-1.26250.

Alternative option. If the USD/CAD quotes overcome the local resistance of 1.27250, we recommend considering purchases. The target movement level is 1.27600-1.27750.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.531

Open: 112.757

% chg. over the last day: -0.37

Day's range: 112.652 – 113.070

52 wk range: 99.53 – 118.67

At the moment, the bullish sentiment is prevailing on the USD/JPY currency pair. The trading instrument has opened with a gap up of more than 50 points. The price is testing the round level of 113.000. The 112.700 mark is already a "mirror" support. The further growth of the USD/JPY quotations is not excluded. We recommend paying attention to the US government bonds yield.

The publication of important statistics on the economy of Japan is not planned.

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is in the positive zone and continues to rise, which indicates the growth of the USD/JPY currency pair.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/JPY.

Trading recommendations

Support levels: 112.700, 112.350, 112.000

Resistance levels: 113.000, 113.500

If the price fixes above the round level of 113.000, we recommend considering buying USD/JPY. The movement is tending to 113.500.

Alternative option. If the price fixes below the "mirror" support of 112.700, you need to look for entry points to the market to open short positions. The target level of movement is 112.350-112.250.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.